How Much Did Century Entertainment International Holdings' (HKG:959) CEO Pocket Last Year?

This article will reflect on the compensation paid to Ng Wai Ng who has served as CEO of Century Entertainment International Holdings Limited (HKG:959) since 2012. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Century Entertainment International Holdings.

View our latest analysis for Century Entertainment International Holdings

Comparing Century Entertainment International Holdings Limited's CEO Compensation With the industry

Our data indicates that Century Entertainment International Holdings Limited has a market capitalization of HK$73m, and total annual CEO compensation was reported as HK$600k for the year to March 2020. That's a notable decrease of 59% on last year. Notably, the salary of HK$600k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.0m. This suggests that Ng Wai Ng is paid below the industry median. What's more, Ng Wai Ng holds HK$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. At the company level, Century Entertainment International Holdings pays Ng Wai Ng solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Century Entertainment International Holdings Limited's Growth Numbers

Over the past three years, Century Entertainment International Holdings Limited has seen its earnings per share (EPS) grow by 88% per year. In the last year, its revenue is down 25%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Century Entertainment International Holdings Limited Been A Good Investment?

Since shareholders would have lost about 80% over three years, some Century Entertainment International Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Century Entertainment International Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Ng Wai is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Century Entertainment International Holdings that investors should look into moving forward.

Important note: Century Entertainment International Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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